Cigna reports higher-than-predicted third quarter earnings, raises 2019 profit estimate

Cigna Corp increased its 2019 profit target after reporting its third quarter earnings, which showed to be higher than predicted. The rise in profit was attributed to a jump in revenue from the company s health insurance unit and Express Scripts pharmacy benefits business.

Cigna Corp s US health insurance business  revenue rose to almost 12%, or $9.15 billion in the third quarter as the company added even more customers and raised premiums on health plans that were sold to big employers and self-insured customers. Overall, it brought in $24.88 billion revenue.

The company adjusted its 2019 forecast, from the range $16.60 to $16.90, to $16.80 to $17.00 per share. Analysts predicted a $16.81 per share.

The medical care ratio, or the medical claims versus income from premiums, was 80.5% in the third quarter, beating the 80.86% estimate.

Net income surged to $5.57 per share, or $1.35 billion, from $3.14 per share, or $722 million the previous year.

In total Cigna earned $4.54 per share excluding items, beating the average estimate of analysts $4.36, according to IBES data from Refinitiv.

Cigna Corp s total revenue tripled to $38.56 billion.

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